Urban Enterprise Zones
in New Jersey: Have They Made a Difference?
Some current proposals appear to have been pulled off the Vietnam shelf: Jack Kemp's urban enterprise zones
resemble the strategic hamlet program; sending advisers to Peru recalls widening the war into Cambodia; stressing the number of people put behind bars sounds like body counts.
TRENTON, N.J., May 23 -- The five top writers of car insurance are among the companies that have fallen short of writing coverage in the state's 28 urban enterprise zones
, and have been ordered to meet their quotas by year end.
The Clinton administration has set a number of economic goals, which include: * Increasing business investment: by enacting a 10% investment tax credit offering new businesses a 50% exclusion from corporate profits tax; making the existing research and development tax credit permanent; providing credits for firms in urban enterprise zones
; and expanding loan programs for small businesses in cities.
In the meantime, the public comment has been closed on the proposed creation of a special insurance exchange to keep car insurance rates from skyrocketing in the urban enterprise zones
once the new map is approved.
Clinton further promises to try to set up a national network of community development banks to provide small loans to low-income entrepreneurs and to create urban enterprise zones
* designating urban enterprise zones
and empowerment zones for a targeted federal purchases, locating the proposed Federal Manufacturing Technology Outreach Centers in those zones, and providing a portion of U.S.
The administration also called for creating urban enterprise zones
in 300 areas nationwide.
* Investing in Communities: Target funding and CDBG for rebuilding infrastructure; create a nationwide network of community development banks for investments in inner cities; put 100,000 new police officers on the street and create a National Police Corps to help cities fight crime; create urban enterprise zones
; pass a more progressive Community Reinvestment Act;
It would provide for 50 rural and urban enterprise zones
. Cities and towns designated by HUD or the Department of Agriculture for enterprise zones would be able to issue a modified of qualified redevelopment bonds--only half of which would count against the state private activity volume cap.
President Bush vetoed legislation in April to extend expiring municipal tax priorities - municipal mortgage revenue and small issue industrial development bonds, and the low income and targeted jobs tax credit programs - and to create urban enterprise zones
. After the civil disturbances in Los Angeles, the House passed a revised tax bill, including not only permanent extenders of the priority municipal programs, but also $5 billion in enterprise zone tax credits and direct assistance to the nation's most severely distressed cities and towns.
Huber discussed the importance of New Jersey's special financing programs; its tax districts, including Urban Enterprise Zones
and Foreign Trade Zones; and state grant programs, such as the Business Employment Incentive Program (BEIP) and the Business Relocation and Retention Assistance Grant Program (BRRAG).